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Accounting Assignment | Accounting for Managers

   

Added on  2020-05-28

14 Pages2752 Words61 Views
Running head: ACCOUNTING FOR MANAGERSAccounting for ManagersName of the Student:Name of the University:Author’s Note:Course ID:
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1ACCOUNTING FOR MANAGERSTable of ContentsAnswer to Question 1: Bonza Handtools Limited...........................................................................2Answer to Question 2: The Tassie Company..................................................................................5Answer to Part (i):.......................................................................................................................6Answer to Part (ii):......................................................................................................................7Answer to Question 3: ABC Limited..............................................................................................7Answer to Part 1:.........................................................................................................................7Answer to Part 2:.........................................................................................................................8Answer to Part 3:.........................................................................................................................8Answer to Part 4:.........................................................................................................................8Answer to Part 5:.........................................................................................................................8Answer to Question 4:...................................................................................................................10References:....................................................................................................................................12
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2ACCOUNTING FOR MANAGERSAnswer to Question 1: Bonza Handtools LimitedTo,The Directors of Bonza Handtools LimitedDate: 17.01.2018Subject: Analysis of the proposed alternativesRespected Sir/Mam,The main intention of this report is to present the influence and advantages of the threeseparate proposals laid down on the part of the different organisation personnel after criticaldissection of the same. The evaluation of each of these proposals is represented briefly asfollows:
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3ACCOUNTING FOR MANAGERSProposal of the accountant:According to the provided information, it has been identified that Jan Rossi is theaccountant of Bonza Hnandtools Limited. The person has come up with a proposal of making theselling price per unit to $140, as it would help in increasing the profit margin. This could bevalidated with the help of figures seen in accordance with the above table. This is because theadoption of this proposal would help in increasing the profit margin by $75,000, as the currentprofit level would change from $300,000 to $375,000. However, for experiencing this increase inprofit level, an effective advertising campaign is required for Bonza Handtools Limited. In order to conduct this advertising campaign, it would have to spend $125,000. If theadvertising campaign fails to meet the desired goals of the organisation like dragging theattention of the customers, it might lead to rise in the overall risk level. The effect would beconsiderable decline in the existing profit level of the company, while the burden of cost forpromotion and advertising would rise largely. In order to combat with this situation, themanagement of Bonza Handtools Limited would have the selling prices of its products andhence, the customers might have to bear additional costs to avail the products of the organisation.As a result, the organisation might experience reduction in customer loyalty (Alammar and Kohn2016).Proposal of the production manager:According to the provided information, it has been identified that Tom Tune is theproduction manager of Bonza Hnandtools Limited. According to the personnel, there should beincrease in sales volume by 25% with rise in variable cost per unit by $5. The intention is toimprove the overall product quality for generating additional revenues. For this goal to be
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